Pa. offers $10M in natural-gas vehicle incentives

HARRISBURG, Pa. (AP) — Pennsylvania environmental officials are offering $10 million worth of incentives to companies, government agencies and nonprofits for the purchase of cars or light trucks that run on natural gas, or to convert lighter-weight vehicles that currently use gasoline.

The Pennsylvania Department of Environmental Protection launched the program today in a bid to generate demand for natural-gas vehicles. A drilling boom in Pennsylvania and other states in recent years has produced enormous quantities of cheap gas.

The DEP grant program is open to nonprofit organizations, companies, local governments and local transportation agencies. Grants will be awarded in the fall. Funding comes from a tax on utilities.

Earlier this month, the state awarded more than $6.7 million in funding to 18 companies and local governments that switched to natural gas for heavy-duty vehicles.